7.7 Business RatiosThe following ta

7.7 Business Ratios
The following table details our primary business ratios. Initial analysis indicates that ATI's ratios for profitability, risk, and return are financially favorable and will improve greatly in year two of operation. Industry Profile ratios are based on Standard Industry Classification (SIC) Index code 4724.

RATIO ANALYSIS
YEAR 1 YEAR 2 YEAR 3 INDUSTRY PROFILE
Sales Growth 0.00% 10.08% 10.00% 4.00%
Percent of Total Assets
Accounts Receivable 23.03% 25.17% 22.22% 25.20%
Other Current Assets 12.03% 11.94% 9.59% 38.80%
Total Current Assets 81.50% 81.62% 85.25% 64.00%
Long-term Assets 18.50% 18.38% 14.75% 36.00%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 41.33% 28.90% 25.17% 39.60%
Long-term Liabilities 53.06% 47.37% 33.74% 16.30%
Total Liabilities 94.39% 76.27% 58.92% 55.90%
NET WORTH 5.61% 23.73% 41.08% 44.10%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 21.75% 23.00% 24.00% 38.30%
Selling, General & Administrative Expenses 19.18% 18.48% 17.78% 27.50%
Advertising Expenses 0.00% 0.00% 0.00% 0.40%
Profit Before Interest and Taxes 5.19% 7.71% 9.90% 1.30%
Main Ratios
Current 1.97 2.82 3.39 1.44
Quick 1.97 2.82 3.39 1.13
Total Debt to Total Assets 94.39% 76.27% 58.92% 55.90%
Pre-tax Return on Net Worth 240.36% 109.29% 76.63% 3.20%
Pre-tax Return on Assets 13.49% 25.93% 31.48% 7.20%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 2.57% 4.52% 6.22% n.a
Return on Equity 168.25% 76.51% 53.64% n.a
Activity Ratios
Accounts Receivable Turnover 3.99 3.99 3.99 n.a
Collection Days 56 87 87 n.a
Accounts Payable Turnover 7.91 12.17 12.17 n.a
Payment Days 27 36 29 n.a
Total Asset Turnover 3.67 4.01 3.54 n.a
Debt Ratios
Debt to Net Worth 16.81 3.21 1.43 n.a
Current Liab. to Liab. 0.44 0.38 0.43 n.a
Liquidity Ratios
Net Working Capital $58,443 $77,242 $109,675 n.a
Interest Coverage 3.43 6.18 9.77 n.a
Additional Ratios
Assets to Sales 0.27 0.25 0.28 n.a
Current Debt/Total Assets 41% 29% 25% n.a
Acid Test 1.41 1.95 2.50 n.a
Sales/Net Worth 65.40 16.91 8.63 n.a
Dividend Payout 0.00 0.00 0.00 n.a